$10 Mutual Referral Credit

Instacart implemented a successful customer acquisition strategy through a referral program that incentivized existing customers to share the service with friends.

Key Points:

• Core Referral Mechanism:

  • Existing customers share a unique link with friends
  • New customers get $10 in free groceries
  • Referring customer also receives $10 in free groceries
  • No upfront cost to share - only pays out when successful

• Program Success Factors:

  • Customers were proud to be Instacart users
  • Small incentive provided the needed nudge to share
  • Natural word-of-mouth amplified through rewards
  • Became one of their top performing acquisition channels

• Context:

  • Implemented after failed marketing experiments like:
    • Ice cream sandwich giveaways
    • Traditional transit advertising
  • Combined with free delivery promotion
  • Still remains effective years later as a primary growth channel

The program worked because it aligned customer's natural desire to share a service they liked with a meaningful but modest reward structure that benefited both parties.